The shift towards becoming a cashless society is gathering momentum. Data presented by TradingPlatforms.com, an education and comparison platform for online traders, shows that by 2024, mobile wallets will be responsible for one-third of all POS transactions globally.
Even prior to the pandemic, small business owners were looking at cashless payments as a way of driving bottom line. Since the health crisis reared its head, cashless payments have become even more prevalent, deemed as a safer and more convenient way of managing money.
One-third of POS Transactions by Mobile Wallet in 2024
For small businesses, offering this progressively more popular, safe and convenient way for customers to pay for goods and services, is a shrewd way to meet consumer demand and ultimately be more profitable.
Jastra Kranjec, author of the TradingPlatforms’ report on the data, notes the rising demand for cashless forms of payment: “Over the last few years, mobile payment services provided hundreds of millions of people access to electronic transactions, especially in underbanked markets in Africa, Asia and Latin America.
“However, they also became very popular among tech-savvy consumers in developed countries,” writes Kranjec.
Mobile Wallets Two Times More Prevalent Than Credit Cards in Payments in 2020
TradingPlatform’s research also looked at the volume of different methods of payments in ecommerce transactions worldwide. In 2020, digital/mobile wallet payments were by far the most prevalent form of payment, equating to 44% of the share, two times more than credit cards and three times more than debit cards.
Credit card payments took almost 23% of the volume of payments in 2020. Debit card transactions made up almost 13%, followed by bank transfers that took up 7.66%.
Cash Transactions to Drop Further
According to TradingPlatforms, cash transactions are set to drop significantly in usage, falling from 20.5% in 2020 to 12.7% in 2024.
As cash payments decline, mobile wallets are to become a $4 trillion industry by 2024. In 2021, 1.48 billion people worldwide are set to use mobile payments.
The United States ranks as the world’s second-largest mobile payments market. The data shows that the US market is set to witness high growth in mobile payments in forthcoming years.
The data presented by TradingPlatforms, provides important insight into the burgeoning mobile payment market and the rising consumer demand for cashless payments. Small businesses should take note and, if they have not already done so, start offering cashless payment options to customers.
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